KDB seeks to offer more funds to innovative startups
By Lee Kyung-min The state-run Korea Development Bank (KDB) has sought to funnel more money into innovative startups by reforming its credit screening and loan review system, it said Monday.The long-term move to foster startups with great potential by offering stable funding seeks to revise previous methods whereby companies had a limited way of securing operational funds as they were judged only on performance-based criteria. They include sales, net profit, firm credit scores, or whether they can provide enough collateral. The previous method has long been criticized as it denied firms with short-term weak performance, thus cornering those firms or sometimes forcing them into bankruptcy. Under the new system in full implementation since Aug. 10, a review committee under the state lender conducts a qualitative review over the management competence, marketability, growth potential and technology. About five bank officials sit on the committee with up to two outside experts including officials from other state-run organizations. KDB Chairman Lee Dong-gull / YonhapEligible for the revis
